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Mortgages drop due to credit crunch


During March a number of mortgages were reduced due to conditions of the global credit crunch.

After deep investigation made by the Council of Mortgage Lenders (CML), figures estimated a £26.3 billion lending activity taken place during March 2008.

There was a 17 per cent drop comparison to what was lent throughout March 2007.

Between February and March mortgage lending increased by 5 per cent, the CML would usually expect this figure to be at least 20 per cent. Mortgage borrowers were on top during April period when the Bank of England dropped the base rate of interest to only five per cent.

Director general of CML, Michael Coogan suggested that this could be a bad year for majority of homeowners: "The picture for mortgage approvals for new business and prospective lending levels in the next few months is worsening.

"As mortgage costs increase, it remains important for any borrower with potential financial difficulties to speak to their lender as soon as possible, and preferably before they have missed a payment."

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